October 3, 2024   

Clarifying the Fate of Lighting Brands Amid Saylite Shutdown

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Private equity firm retains key brands as others are discontinued with Saylite winddown

 

In the recent couple of months, confusion has mounted in the lighting industry regarding the fate of several brands previously managed alongside Saylite, a company that has recently halted its activities.

As reports of the closure circulated, many industry professionals were uncertain about which brands would survive and which would be discontinued. This uncertainty has now been clarified: Vantage Lighting and Southern Lighting Gallery (SLG) remain operational, while brands such as Saylite, Lights Fantastic Pro (LFP), and Mobern Lighting are no longer active.

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Private equity firm Core Industrial Partners, which acquired Saylite in 2019, initiated a restructuring process that has left some brands shuttered while others have emerged intact. The firm’s acquisitions and investments have reshaped the landscape of its lighting brands, with some surviving the recent turmoil and others ceasing operations.

 

Vantage and SLG: Staying Alive

Among the surviving brands are Vantage Lighting and SLG. Vantage Lighting, a Rhode Island-based manufacturer specializing in downlights, high bays, and cylinders, continues to operate under Core Industrial Partners' ownership. Representatives from Vantage confirmed the company's status during the ArchLIGHT Summit in Dallas, Texas, where they assured stakeholders that the brand was "alive and well" but politely refrained from commenting on other related brands.

SLG, formally known as Southern Lighting Gallery, operates showrooms in Augusta, Georgia, and as Charleston Lighting & Interiors in Charleston, South Carolina, serving regional markets.

Both Vantage and SLG had previously reported to the outgoing Saylite CEO, Chris Armstrong, which led to speculation about their future. However, recent reports have clarified that neither brand was in jeopardy of shutting down, despite their previous connection to Saylite.

 

Sero Cardamone to Lead Vantage and SLG
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Above: Sero Cardamone (file photo)

In a key development, lighting industry veteran Sero Cardamone has been appointed to lead both Vantage and SLG under Core Industrial Partners. Cardamone brings decades of experience to his new role, having spent much of his career with Acuity Brands, where he held various leadership positions, including head of global sales.

He joined Core Industrial Partners last month as President of Vantage and SLG – guiding their growth as independent brands. Cardamone reportedly had no involvement in the wind-down of Saylite or its affiliated brands, with his efforts focused on the continuing operations of Vantage and SLG.

 

Saylite and Other Brands Shutting Down

While Vantage and SLG have survived, Saylite and several of its affiliated brands are no longer operational. Saylite, once known as Texas Fluorescents and Fleco Industries, announced to stakeholders months ago that it would cease operations by September 29, 2024. This closure impacts not only Saylite but also Lights Fantastic, Lights Fantastic Pro (LFP), and Mobern, which had been part of its brand portfolio. These brands, which primarily served the multi-family residential lighting market, struggled to maintain significant traction in recent years and were unable to continue under Core Industrial Partners’ restructuring efforts.

 

Can American-Made Lighting Compete in the Price-Driven Sector?

The shutdown of Saylite may reflect broader market difficulties faced by domestic companies that focus on value-driven, contractor-grade products. For decades, Texas-based Saylite, formerly known as Texas Fluorescents, and companies like Mobern Lighting out of Maryland, thrived by offering readily available, economical solutions to the market. However, the shift from fluorescent lighting to LED technology has changed the competitive landscape, particularly as offshore products—primarily from China—have flooded the market with low-cost alternatives.

In the fluorescent lighting era, fixtures were often constructed from thicker-gauge steel and deeper housings, which allowed companies like Texas Fluorescents to produce cost-effective yet durable products for contractors. However, the advent of smaller, lighter, low-cost LED solutions, such as sub-$20, 2' x 2', tunable white, LED flat panels, has made it increasingly difficult for domestic manufacturers to compete at the same price points. Offshore manufacturers have capitalized on the demand for economical lighting solutions, undercutting prices that domestic suppliers like Saylite and Mobern once thrived on.

In response to these challenges, Saylite attempted to pivot in recent years by shifting its focus toward value-based architectural lighting systems. However, this move did not seemingly generate the robust growth necessary to carry the company into a new era of profitability.

 

Core Industrial Partners' Broader Lighting Strategy

Core Industrial Partners, a Chicago-based private equity firm, has invested heavily in the lighting industry in recent years. The firm has pursued a strategy of acquiring and developing brands in the industrial technology and manufacturing sectors, including lighting. Vantage Lighting was just added to Core’s portfolio in 2023.

One key distinction is that well-respected architectual lighting brand, Kelvix, another lighting company in Core’s portfolio, remains unaffected by the closure of Saylite and its affiliated brands. Kelvix, based in Oregon, operates as a separate portfolio company and has no direct ties to Saylite’s former leadership. Its operations are expected to continue independently, without disruption from the ongoing changes in Core’s other lighting assets.

 

 

 




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